In the context of this chapter,how can price discrimination increase profits for firms and increase the welfare of society?
A) It can't; those are two mutually exclusive goals.
B) When firms earn higher profits,governments collect additional tax revenue.
C) When firms earn higher profits,they are able to employ more workers,leading to a more prosperous economy.
D) Firms are able to capture more revenue by selling their product to more consumers,which means that more buyers are able to acquire a desired product.
E) It can't; welfare-minded societies tend to overregulate business profits.

Question

Quizplus · Accepted Answer

Price discrimination allows firms to capture more revenue by selling their product to more consumers at different prices, thus increasing their profits. This also benefits society by making the product available to more buyers who may not have been able to afford it otherwise. Additionally, the firm may use its increased profits to invest in research and development, leading to better products and further benefits for society.

In the Context of This Chapter,how Can Price Discrimination Increase